The Amount of Value a Firm Creates Is Measured By

question 37

Multiple Choice

The amount of value a firm creates is measured by:

• A)the difference between the previous year's profitability and the current year's profitability.
• B)dividing the market price of its products by the price that customers are actually willing to pay.
• C)the difference between its costs of production and the value that consumers perceive in its products.
• D)dividing the net profits of the firm by total invested capital.
• E)the sum of the profitability of the last two fiscal years.

---

Definitions:

Self-Serving Bias

The common human tendency to attribute positive events to one's own character but attribute negative events to external factors.

Self-Deception Strategies

Mental tricks people use to help them believe things that are false.

Self-Esteem

An individual's subjective evaluation of their own worth, encompassing beliefs about oneself as well as an emotional state such as pride or despair.

Self-Esteem

A measure of how much you value, respect, and feel confident about yourself.